Greece has enacted a significant package of amendments to its employment legislation. These changes took effect in early 2025 and carry direct consequences for any foreign employer with staff based in Greece. Companies that fail to act promptly risk enforcement exposure, back-pay liability, and the invalidation of existing employment contract arrangements.
Greece's updated employment legislation introduces revised rules on working-time recording, employment contract documentation, social security contribution reporting, and termination procedure requirements. Foreign employers with Greek-based employees must align their contracts, payroll processes, and dismissal notice practices with the new standards. The primary compliance deadline for bringing existing arrangements into conformity falls within the first half of 2025.
This alert sets out what has changed, which business categories are directly in scope, and the immediate actions required to achieve compliance.
What has changed and when it takes effect
Greek employment legislation has been amended across several interrelated areas. The core changes address four operational domains: digital registration of working hours, employment contract content requirements, rules governing collective agreement application, and the calculation and notice periods applicable to dismissal.
Digital working-time registration. Employers must now record daily start and end times for each employee through the Greek Labour Inspectorate's digital platform. This obligation applies to all employment categories, including part-time and rotating-shift workers. Manual records are no longer accepted as the primary record of attendance. Employers that currently rely on paper-based or spreadsheet systems must migrate to the approved digital system without delay.
Employment contract content. All employment contracts must now include an expanded set of mandatory clauses. These cover the place of work, the specific nature of duties, applicable collective agreement references, social security registration details, and procedures for modifying working conditions. Contracts concluded before the amendments took effect must be reviewed. Where mandatory clauses are absent, employers face a presumption that the most employee-favourable interpretation applies.
Collective agreement application. The amendments clarify the hierarchy of applicable collective agreements. Where a sectoral collective agreement exists, its terms set the floor for individual employment contracts. Foreign employers that have historically applied only the minimum statutory terms – without reference to any sectoral collective agreement – may now be in breach if a relevant agreement covers their sector.
Dismissal notice and termination procedure. Notice periods for dismissal have been recalibrated based on length of service. Employers must now follow a prescribed termination procedure that includes written notice, calculation of severance based on updated formulas, and timely payment. Failure to follow the correct sequence renders a dismissal procedurally defective. Greek courts have consistently treated procedural defects in termination as grounds for awarding compensation beyond the statutory severance amount.
The effective date for the core working-time registration obligation was 1 July 2025. Contract documentation and termination procedure changes apply to all new contracts from 1 January 2025. For existing contracts, the grace period for amendment runs until 30 June 2025.
Which employers are affected and the compliance threshold
The amendments apply to all employers with employees working in Greece, regardless of where the employer is incorporated. This means EU-based companies with Greek subsidiaries or branches, non-EU multinationals with a registered presence in Greece, and foreign companies that have posted workers to Greece under service agreements are all within scope.
There is no minimum headcount threshold. A foreign employer with a single Greek-based employee is subject to the full range of obligations. This is a common misconception among international clients – the assumption that small or newly established operations benefit from a transitional exemption is not supported by Greek employment legislation.
Specific categories that carry heightened compliance risk include:
- Technology and services companies that employ Greek nationals remotely under contracts drafted under another legal system
- Businesses operating through Greek commercial agents or similar intermediaries where a disguised employment relationship may be found to exist
- Employers in sectors covered by a sectoral collective agreement who have not reviewed applicable collective agreement coverage since the amendments
- Companies that have recently terminated employees in Greece without following the updated termination procedure
The Greek Labour Inspectorate (Soma Epitheorisis Ergasias – SEPE) has significantly expanded its digital audit capabilities alongside these legislative changes. Cross-referencing of social security contribution data with working-time registration records is now automated. Discrepancies trigger inspection procedures without prior notice.
For a tailored review of how these changes apply to your Greek operations, contact us at info@ferrazwhitmore.com.
Immediate action items for international companies
Foreign employers should treat the following five steps as urgent priorities.
1. Audit all Greek employment contracts. Review each contract against the updated list of mandatory clauses required under Greek employment legislation. Pay particular attention to clauses on place of work, duty descriptions, and collective agreement references. Engage a lawyer in Greece with employment law expertise to assess whether existing contracts satisfy the new content requirements.
2. Register on the digital working-time platform. If your Greek entity is not yet registered on the Labour Inspectorate's digital system, this must be addressed immediately. Each employee's working schedule must be entered before shifts commence. Retrospective entry is not permitted and is treated as a violation.
3. Identify applicable collective agreements. Determine whether any sectoral or occupational collective agreement covers your Greek employees. This requires a sector-by-sector analysis. Where a relevant collective agreement exists, verify that your contracts and pay structures meet or exceed its minimum terms. Collective agreement compliance is one of the most frequently cited grounds for SEPE enforcement actions against foreign employers.
4. Review any pending or recent terminations. If your organisation has dismissed Greek employees since 1 January 2025, verify that the dismissal notice and termination procedure followed the updated rules. If there is any procedural gap, take corrective steps before an employee files a complaint. Greek employment courts apply strict standards to the technical validity of dismissals.
5. Align social security reporting. Confirm that your social security contribution declarations match the hours and earnings now recorded in the digital working-time system. Mismatches between the two data sets are a primary trigger for SEPE and social security authority audits. Companies operating through Greek corporate structures should also review their corporate law compliance in Greece to ensure that employment and corporate obligations are addressed in a coordinated manner.
For context on how comparable employment law reforms have been handled in other Southern European jurisdictions, the analysis of employment regulation changes in Portugal provides a useful comparative reference.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our employment law practice supports international employers managing Greek workforce obligations, cross-border employment contracts, and multi-jurisdictional compliance programmes. As a law firm in Greece and across Europe, we combine Portuguese civil law expertise with English common law tradition to deliver practical, cross-border employment law solutions. Our attorneys have advised on employment contract restructuring, collective agreement analysis, and termination procedure matters across both civil law and common law systems. We work with international entrepreneurs, multinational companies, and in-house legal teams who need results-oriented counsel. Engaging a lawyer in Greece with cross-border experience is particularly valuable when employment obligations intersect with corporate structure questions. To discuss your situation, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.